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Customer Segmentation: An application to dental medicine patients

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Detalhes bibliográficos
Resumo:Customer segmentation allows to divide a company’s customers into multiple market segments, enabling the development of customized marketing actions based on each segment’s characteristics. This work describes the application of a customer segmentation approach to the patients of a Portuguese dental company. The approach taken to select the feature subset for the final model was mostly based on the LRFM (length, recency, frequency, and monetary) model, and the monetary variable was split into multiple variables according to the treatment category where the amount was spent. K-Means and Self-organizing maps were used to cluster the company’s patients using these variables, and the results returned by both algorithms are compared. The final solution was obtained with K-Means, and 7 clusters of patients were identified. An overview of the 7 clusters is provided, and possible marketing actions are suggested based on their main characteristics. The results allowed the company to understand how its turnover was distributed across segments, and to develop an initiative to contact the patients belonging to a segment where most of them did not have an appointment in one of the company’s clinics for a long time.
Autores principais:Gonçalves, Tiago Nobre Caldeira
Assunto:Clustering Customer Segmentation RFM K-Means Self-organizing maps
Ano:2023
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:Customer segmentation allows to divide a company’s customers into multiple market segments, enabling the development of customized marketing actions based on each segment’s characteristics. This work describes the application of a customer segmentation approach to the patients of a Portuguese dental company. The approach taken to select the feature subset for the final model was mostly based on the LRFM (length, recency, frequency, and monetary) model, and the monetary variable was split into multiple variables according to the treatment category where the amount was spent. K-Means and Self-organizing maps were used to cluster the company’s patients using these variables, and the results returned by both algorithms are compared. The final solution was obtained with K-Means, and 7 clusters of patients were identified. An overview of the 7 clusters is provided, and possible marketing actions are suggested based on their main characteristics. The results allowed the company to understand how its turnover was distributed across segments, and to develop an initiative to contact the patients belonging to a segment where most of them did not have an appointment in one of the company’s clinics for a long time.